I personally would state exactly what happened. Right to the point. I would sit the daughter down and explain your disappontment with her choices, the fact that at the time of you discarding the picture you placed a lot of blame on her mom and tossed the picture away. Then I would state how you came to the conclusion to get the picture out of the trash and your decision to have another one made at your nickel. Use the term love a lot and I think your daughter may understand your journey of thoughts and understand that you do indeed love her and have a heart.
How old is she? Sorry I am not up on her saga to be of more help.